January 31, 2017 / 8:51 PM / in a year

LATAM CLOSE-No deals price in LatAm primary market

* Fitch says default at Venezuela's PDVSA probable
    * Argentina-focused energy operator to start roadshows
    * Mexico's economy grew 2.3% in 2016, FinMin economist says
    * Emerging markets in near-record January global bond rush

    By Mike Gambale and Paul Kilby
    NEW YORK, Jan 31 (IFR) - There were no new deals priced in the LatAm primary
market on Tuesday.
    Below is a snapshot of sovereign credit spreads across the region.
     SOVEREIGN      1/30  1/27  1/26  1D   10D    YTD    2015/16 HIGH
 ARGENTINA          441   429   435   12    14    15           -
 BARBADOS           669   669   666    0   -15    26     659 (2/11/16)
 BRAZIL             262   258   265    4    5     -40    542 (2/11/16)
 CHILE               73    73    74    0    -1    -11    143 (2/11/16)
 COLOMBIA           188   189   191   -1    6     -11    412 (2/11/16)
 COSTA RICA         388   392   393   -4   -18    -51    587 (2/11/16)
 DOMINICAN REP      346   348   351   -2   -19    -49    542 (2/11/16)
 ECUADOR            596   615   627   -19  -37    -58   1765 (2/11/16)
 EL SALVADOR        592   589   623    3    78    71     840 (2/11/16)
 GUATEMALA          255   255   253    0    -1    -7     385 (2/11/16)
 JAMAICA            339   341   345   -2   -21    -24    519 (2/11/15)
 MEXICO             195   194   195    1    -5    -6     278 (2/11/16)
 PANAMA             160   158   159    2    3     -21    272 (2/11/16)
 PERU               152   150   150    2    6     -15    291 (2/10/16)
 TRINIDAD & TOBAGO  205   206   205   -1    -8    -15    173 (1/15/15)
 URUGUAY            211   212   212   -1    1     -21    344 (2/11/16)
 VENEZUELA          2104  2096  2091   8   -154  -190   3713 (2/12/16)
    Source: Bank of America Merrill Lynch Master Index
    One-day change 10 out of 17 sovereigns flat to wider
    Ten-day trend 10 out of 17 sovereigns tighter
    YTD: Barbados wider by 26bp
    YTD: Ecuador  tighter by 58bp
    YTD: Panama tighter by 21bp
    Stoneway Capital Corporation, a private company with equity contributed by
Siemens AG, formed for the purpose of constructing, owning, and operating four
simple-cycle power generating plants in the Buenos Aires region of Argentina,
has secured four Power Purchase Agreements through CAMMESA for a 10-year period
on each. The company mandated Jefferies as sole global coordinator and Jefferies
and Seaport Global as joint-bookrunners to arrange meetings with fixed income
investors starting on January 31 for a US$500m US dollar-denominated 144A/Reg S
senior secured offering of 10-year maturity.
    The schedule will be as follows: Wed Feb 1: New York, Thu Feb 2: New York,
Fri Feb 3: Los Angeles, Mon Feb 6: Boston, Tue Feb 7: London, Wed Feb 8: London,
Thu Feb 9: Frankfurt/Munich.
    Peruvian mortgage bank Fondo Mivivienda started roadshows this week to
market a possible sol and/or dollar denominated bond issue.
    The company was in London and Lima on Tuesday, and will head to Boston on
Wednesday, Los Angeles on Thursday and New York on Friday. Expected ratings are
BBB+/BBB+ by S&P and Fitch. Morgan Stanley and Scotiabank have been mandated to
organize the fixed-income investor meetings.
     Fondo Mivivienda is controlled by the government of Peru and is the
country's leading mortgage financing developer and promoter.
    Compania Latinoamericana de Infraestructura y Servicios (CLISA) kicked off
roadshows this week to market a tap of its 9.5% 2023s through BCP Securities and
    The Argentine infrastructure firm was in Buenos Aires on January 31, will
head to New York on February 1 and 2 and in Boston on February 3.  The company
issued US$200m of the notes in July last year, pricing them at 98.753 to yield
9.75%. BCP Securities and Santander also acted as leads on that occasion.
Ratings are B-/B-. 
    Banco Supervielle, the fifth largest Argentine domestically-owned private
bank in terms of assets, has mandated Credit Suisse and Santander to arrange a
series of fixed income investor meetings in the US and Europe starting on
January  30th. 
    The borrower was in London on Tuesday and will wrap up meetings in New York
on February 1.
    An ARS-denominated (USD-payable) 144A/Reg S senior notes offering with
3.25-year average life, expected to be rated B3 by Moody's and B by Fitch, may
follow, subject to market conditions.
    Argentina's Province of Entre Rios wrapped up roadshows on Tuesday ahead of
a possible bond sale.
    The borrower met investors late last year through Citigroup, HSBC and
Santander, visiting London, Boston and New York. However, a bond deal never
emerged. The same banks are taking it on the road next week. Expected ratings
are B-/B by S&P and Fitch.
    Brazilian railroad operator Rumo will start fixed-income investor meetings
next week to market a possible US dollar bond. The borrower will head to
Switzerland and Boston on February 1 and the New York area on February 2. Rumo,
a subsidiary of Cosan, has mandated BB Securities, Bradesco, BTG Pactual, Itau,
Morgan Stanley and Santander on the deal. Expected ratings are BB-/BB-.
    Sigma Alimentos, a multinational food company with market positions in
Europe, the US and Latin America, and sole-owner of Campofrio Food Group, has
hired BNP Paribas and JP Morgan as active joint bookrunners and MUFG and
Rabobank as Passive Joint Bookrunners to arrange a series of fixed income
investor meetings in Europe, commencing on January 30. A debut euro-denominated
seven-year fixed-rate benchmark offering, expected to be rated Baa3 by Moody's,
BBB by S&P and BBB by Fitch, is expected to follow.
    Brazilian power company Neoenergia is considering a possible US dollar bond
debut this year after sending out requests for proposals in late 2016, two
market sources told IFR.
    Neoenergia Group's principal shareholders are Banco do Brasil's pension fund
Previ, with a 49.01% stake, and Spain's Iberdrola with a 39% stake, according to
the company's website.
    Paraguay is considering raising up to US$550m in the bond market in March,
Reuters quoted Finance Minister Santiago Pena saying. 
    Inversiones Atlantida, the largest financial group in Honduras, has finished
roadshows to market a potential debut US dollar bond through Oppenheimer.
Expected ratings are B/B by S&P and Fitch.

 (Reporting by Mike Gambale; Editing by Paul Kilby, Shankar Ramakrishnan)
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